What is an OTA?
An OTA (online travel agency) is a website or app — like Booking.com, Airbnb, Agoda, Expedia, Trip.com or Hostelworld — where travellers search, compare and book accommodation from many different properties in one place.
How an OTA business model works
An OTA lists rooms from many independent properties and earns money mainly through commission on completed bookings — or, for Airbnb, a host fee plus a separate guest service fee. In return, the property gets access to a much larger pool of travellers than most could reach on their own marketing budget.
The property keeps control of its own rates and availability, within whatever parity rules the contract requires, and is usually free to sell directly through its own website at the same time.
OTA vs metasearch vs direct booking
OTA: the guest books and pays through the OTA's own checkout, or for some OTAs pays at the property while the booking and commission still flow through the OTA.
Metasearch (such as Google Hotel Ads or comparison-style sites): compares prices across OTAs and direct sites, then sends the traveller onward to complete the booking elsewhere — it isn't itself a place to book.
Direct booking: the guest books on the property's own website, and the property keeps the full rate with no OTA commission, though it still has to find that traffic itself.
Types of OTA, in general terms
| Type | Example focus | Typical commission style |
|---|---|---|
| Global hotel-focused OTA | Booking.com, Agoda, Expedia | Commission per completed stay, usually 15–30% |
| Home/apartment-sharing platform | Airbnb | Separate host fee and guest service fee |
| Hostel/budget-focused OTA | Hostelworld | Commission per completed stay, often higher than hotel-focused OTAs |
| Regional/local OTA | Varies by market | Varies by market and contract |
Why properties use more than one OTA
Different OTAs reach different traveller segments and countries. Relying on only one OTA concentrates both revenue and dependency risk, so most independent properties sell on several OTAs plus their own site at once — which is exactly what a channel manager exists to keep manageable. See our channel manager glossary page.
How Prime Host handles this
Live on the OTAs most properties already use
Booking.com, Airbnb, Agoda, Expedia, Trip.com and Hostelworld sync live today, with around 60 channels in total available to connect through Channex.
One calendar instead of six logins
Bookings from every connected OTA, plus your own direct site, land in one calendar instead of six separate inboxes.
Real commission per OTA
Commission is measured from your own bookings per channel instead of a number typed in once.
Frequently asked questions
What does OTA stand for?
Online travel agency — a site or app where travellers search, compare and book accommodation from many properties.
How do OTAs make money?
Mostly commission on completed bookings. Some, like Airbnb, also charge a separate fee to the guest on top of the host's fee.
What's the difference between an OTA and a metasearch site?
An OTA takes the booking itself. A metasearch site compares prices and sends the traveller onward to book somewhere else.
Should a small hotel sell on multiple OTAs?
Usually yes, to reach different traveller segments and reduce dependency on one channel — but it needs a way to keep rates and availability in sync across all of them.
Do OTAs or direct bookings pay more?
A direct booking keeps the full rate with no OTA commission, but the property has to generate that traffic itself. OTAs bring reach at the cost of commission — most properties use both.
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